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How to Get Low Cost Life Insurance

Everyone wants to spend less on insurance, but reducing your cost takes time and often relies on you changing your lifestyle. But, there are also some simpler ways to lower your premiums...

This page:

Explains factors determining the low cost of life insurance.

Gives some tips on how to keep lowering your premiums.

Life Insurance for as Little as $15/Month?

Premiums can vary by as much as 50% for the same coverage and options, so it pays to get quotes from as many reputable insurers as possible.

With our partner USAA, you can find the ideal combination of premium price and top-notch service that you'd expect from a top-rated carrier.

USAA, normally only offers most of its services to military members, veterans, and their families, however, life insurance is the exception. Now, anyone can get the great pricing and customer service for which the company is known and loved for by their customers.

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The cost of life insurance depends upon a few factors:

the risk you pose to the insurance company.
the policy's death benefit
the type of insurance you choose

Obviously, getting the lowest cost life insurance depends upon your standing within these categories.

Let's tackle each, one at a time.

Your Risk

Your habits, your lifestyle and your health all factor into the risk you pose to your insurance company and, therefore effects the cost of your life insurance premiums. It stands to reason, then, that making improvements in these areas can reduce high premiums, sometimes significantly.

Bad habits like smoking and drinking raise premiums.

Although easier said than done, a sure fire way to get low cost insurance is to quit. After two to five years of moderate drinking and no smoking your insurance prices will decline.

Serious medical conditions inflate the price of insurance tremendously.

Insurance companies lump applicants with specific illnesses into a single group without taking into consideration each individual's situation. The result - everyone with a particular medical condition, no matter how serious or minor it is, is quoted the same price.

If your illness is not in the critical stages, take the time to locate an insurance company that treats every application on an individual basis. You'll most likely never get low cost life insurance, but this approach will definitely lower your cost.

Risky environments lead to higher insurance prices too.

Life insurance companies take into consideration your occupational hazards as well as risky hobbies - like flying or, in this day and age, any extreme sport. Leading a fairly risk-free life is key to finding affordable rates.

If you maintain a healthy and safe lifestyle, you pose little risk to the insurance companies, and your price for life insurance should reflect that. Make sure you take full advantage of the cost breaks insurance companies offer. Look into policies with a risk category called Preferred Risk. These policies are often a much better deal - offering the same coverage for a much lower price.

Low cost life insurance is not impossible to find. Compare rates for free at one of our partner carriers, and you might be surprised by how little you could end up paying.

The Death Benefit

There is little you can alter in terms of the death benefit. You should never decrease the amount of coverage if it means jeopardizing your family's security. However, there is one trick to access low cost life insurance.

Round up to the nearest $250,000 if your death benefit is near a multiple of this figure. You should probably fiddle abound with the coverage amount, checking out how each plan varies by increasing your death benefit by increments of $1,000. Often, once you reach a certain amount, the premium rate drops significantly. You can also call the insurance company and request this information, which is probably a better way yon spend your time.

The Type Of Policy You Choose

Of course, one the simplest ways to save on your life insurance is to choose the type of policy that is easiest on your wallet.

And that would be term life insurance, of course.

We are not going to debate the term vs. whole question here, because there is no need: from a strict cost perspective, term life is much cheaper than whole life, while offering almost as much protection as any permanent policy (except for the fact that it expires after a set number of years).

If you already know that a permanent policy is what you need, then you will have to swallow a higher cost. The benefits are obvious, and if that is what you are looking for, then naturally you will have to pay a higher premium.

But if you are just looking to save money each month, then go with a term policy, and don't look back.

Combine All Of Your Life Policies

If you have multiple policies, a single life insurance policy instead of several small ones will save you money. You may be juggling quite a few life policies at once - an employee group policy along with an individual policy you've purchased or a policy started for you as a child could all be maintained in your name.

Although you might think it makes more financial sense to have several policies with small death benefits and lower premiums, consolidating them saves you money.

Shop around for one policy with a death benefit worth the combined amount all the current policies in your name.

Merge your life insurance policy with you spouse's policy.

A First-To-Die policy covers both spouses. The death benefit is paid to the surviving spouse when either one dies. Often the premiums are much lower than if you buy two individual policies. We recommend this alternative as a money saving device.

A Word To The Wise

No matter how tempting it may be, do not provide any false information on your life insurance application. If the insurance company discovers any distortion of the truth, your policy can be canceled and your premiums will not be reimbursed. Insurance companies can use cause of death (if it is smoking-related yet you claimed to be a non-smoker) as grounds for not honoring a policy. They can also use citations for DUIs or DWIs as justification for increasing premiums or denying continued coverage. If your health is adversely affected by smoking or drinking, we suggest you quit now and reap the 20% - 30% savings.

Low cost life insurance is not that difficult to find, if you know where and how to look. You can start by getting a fast quote from one of our partner carriers, and see how much a policy would cost you. You might be surprised at how small your monthly premiums could actually be.

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